prices saw a massive retreat yesterday, and the prices are still continuing their sell-off today. These ugly price moves in Bitcoin are mainly triggered because of two reasons. Firstly, the biggest advocate of Bitcoin, Elon Musk, has said that Bitcoin prices are high, and secondly, Janet Yellen, the Treasury Secretary, said that Bitcoin is used in illicit financing. This is not a new narrative that policymakers have adapted; we have heard similar messages many times before as well. 

The Bitcoin community strongly believes that any other fiat currency is equally used for such activities, which is not why one should not use it. Nonetheless, the fact is that Bitcoin price has been overbought for the last number of weeks, and one could easily see that exhaustion was strongly on the cards. 

In terms of technical analysis, the Bitcoin price is still trading above the 50, 100, and 200-day simple moving averages on the daily timeframe. As long as this remains in place, there is little to worry about the bullish trend. On the intraday timeframe, such as the four-hour time frame, the price is likely to visit the 200 is the simple moving average. The 100-day simple moving average has been providing support for the time being, but it seems like this is not enough. the Bitcoin price is likely to break below the 100s simple moving average on the 4 -hour time frame 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link